SEC accuses startup LBRY of selling unregistered securities

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1 year ago

The U.S. Securities and Exchange Commission (SEC) sued cryptocurrency startup LBRY, accusing it of selling tokens that are unregistered securities. The startup LBRY created and maintains a decentralized platform for publishing content. LBRY Credit tokens are used to pay for publishing and buying content. However, according to SEC commissioners, these tokens are securities and require registration with the regulator to sell them. "According to our records, between July 2016 and February 2021, LBRY, which offers a video content sharing app, sold digital securities called LBRY Credit to multiple investors, including from the United States. LBRY did not apply to register this offering," the regulator said in a statement. The New Hampshire-based company received more than $11 million in U.S. dollars, bitcoins and "services" from token buyers, according to the SEC. LBRY officials said the SEC lawsuit is part of a massive campaign against the cryptocurrency industry. They recalled the regulator's claims against messenger Kik and Ripple. "This complaint is a huge threat to the entire cryptocurrency industry. We've been preparing for the battle for more than three years, which is how long the SEC has been reviewing our case. We would have liked to have disclosed this earlier, but such a move was not welcomed by the Commission," LBRY's website says. Recall that the LBRY app was launched in July 2016. It gives artists, filmmakers, writers and other artists full financial and creative control over their work.

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